Atlantic City’s House Edge Shrinks: Casino Profits Fold by 9% in 2024
Only Two Properties Managed to Improve Their Profitability
Revenue Tilt
The nine land-based cash casinos in Atlantic City had a rough 2024 after gross operating profit dropped 9.3%, according to the latest casino news from the New Jersey Division of Gaming Enforcement. Profits fell from $744.7 million in 2023 to around $675 million in 2024.
Despite generating $3.31 billion in net revenue, the casinos couldn’t convert visitation into higher bottom lines. Increasing operational costs and shifting customer trends are the reasons behind the drop, according to executives.
Winners and Losers at the Tables
Only two properties managed to improve their profitability.
Caesars posted a 10.7% increase, reaching $57.2 million in annual profit, while Hard Rock saw a 7.9% bump to $135.4 million. Borgata remained Atlantic City’s top earner, with $208.6 million in profits, though it experienced a 7.7% decline.
Other operators were not as fortunate:
- Bally’s: Down 77% to $2.5 million.
- Resorts Casino Hotel: Fell 43.8% to $5.3 million.
- Golden Nugget: Dropped 39.5% to just over $18 million.
- Ocean Casino Resort: Slipped 13.6% to $101.3 million.
Betting casinos blame rising energy costs, staffing challenges, and competition for the profit decline. Several properties also pointed to the shift to mobile gambling apps, which often have lower margins than in-person gaming.
Atlantic City Casino weekend. 🥳 pic.twitter.com/rEYVU4kyxv
— டோனி ஸ்டார்க் 🆃🅾🅽🆈 🆂🆃🅰🆁🅺 (@MaduraiStark) December 20, 2024
Feedback From Casino Guests
According to Casino.org’s user feedback, guests are complaining about higher table minimums, fewer comps and more fees for amenities. One frequent guest said he paid $20 for a small cheeseburger and over $5 for a soda.
Some are also complaining about changes in odds. Multiple reviewers pointed out the move from 3:2 to 6:5 odds when playing blackjack for money and said it was unfair to the customer.
One client summed it up by saying, “The real gamblers know when they are being squeezed. Atlantic City casinos need to stay competitive, or people will take their money elsewhere.”
As the industry notes, this is happening at a time when Atlantic City is trying to diversify its tourism product. The city is upgrading its non-gaming amenities to target conventions, concerts, and upscale dining.
However, local insiders say the casinos need to fix the complaints if they want to keep the customers coming back.
As you may have heard, New Jersey Gov. Phil Murphy wants to increase the online gaming tax to 25% for both sports betting & casino
NJ has a $4B shortfall to address. That said, I’ve heard lawmakers aren’t inclined to support it given the presence operators have in the state 🧵
— Steve Bittenbender (@BittGDCG) February 26, 2025
New Jersey iGaming Continues to Surge
While in-person profits at Atlantic City’s have softened, online casinos in the Garden State were far more upbeat. New Jersey’s iGaming market hit nearly $2.39 billion in revenue during 2024, up 24.1% from the prior year.
December alone generated $228 million, a 26.5% jump from December 2023. Since state officials approved online gambling regulations in 2013, operators have collectively brought in $9.8 billion in revenue, as reported by PlayNJ.
This digital surge reflects a larger trend of players shifting to digital bet platforms for convenience and variety. Earlier this year, online gaming revenue in New Jersey surpassed certain land-based figures.
In February 2025, iGaming climbed to $207.8 million, just above the $203.5 million generated by brick-and-mortar venues. A recent proposal by Governor Phil Murphy to raise the iGaming tax rate to 25% has not gained a lot of traction.
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